25/11/2014 – Seaborne iron ore market unmoved by PBOC rate cut

The seaborne iron ore market was largely flat on Monday November 24 amid slim trade, even as some sellers raised their offers following stimulus measures from the People’s Bank of China (PBOC).

Spot offers for 62% Fe MNP (Mining Area C fines, Newman, or Pilbara Blend fines) were heard at $70-72 per tonne cfr China, compared with $70 per tonne cfr last Friday.

On Global Ore, a January arrival 80,000-tonne cargo of 62% Fe MNP was sold at $70.20 per tonne cfr China.

On the Beijing Iron Ore Trading Center, an 80,000-tonne cargo of 62.3% Fe Newman fines was sold at $70.50 per tonne cfr. The cargo has a laycan of December 6-15.

Metal Bulletin’s index for 62% Fe iron ore was at $70.30 per tonne cfr China last Friday.

“I have been offering the December arrival MNP cargo at $70 per tonne, but haven’t received any bids so far,” a Singapore-based trader said in the afternoon.

“Buyers, especially mills, have become more cautious in placing orders on the seaborne market, since they believe supply pressures remain,” a Beijing-based trader said.

“We have received bids from mills for December arrival MNP cargoes at $68.50-69.50 per tonne cfr,” he added.

While China’s central bank made its first cut to interest rates in two years, the steel and raw materials markets have been largely cool to the news amid persistently weak fundamentals.

“You cannot expect the commodities market to spring to life after a long illness as soon as the central bank injects blood into it,” a mill source in Hong Kong said.

Source – SteelFirst.com